In what is a continuing trend in the swinging of prices, the price of diesel was raised by 95 paise per litre which is the second increase in October alone. On a better note though, petrol prices were untouched, but this does belie a growing volatility in the oil markets.
IOC (Indian Oil Corporation) had raised the prices of diesel by 50 paise at the beginning of this month and while prices of diesel were Rs.44.95 per litre two days ago in the national capital, today the prices will be Rs.45.90 per litre of the fuel.
Fuel prices are mainly driven by two major forces- prices of crude oil in the international markets and the exchange rate fluctuations between the Indian Rupee and the US Dollar. As of now, present international prices coupled with the exchange rate mean a price increase was inevitable and IOC claims that it had no choice but to shift this burden on to customers.
The volatility though, has not always meant bad news. In September for instance, prices of petrol were reduced by Rs.2 per litre in Delhi while petrol prices were reduced by 50 paise per litre showing how deregulation has been working for the Indian markets.
In Maharashtra though, a Rs.2 surcharge has been imposed by the State Government on both diesel and petrol, which means that the average consumer will be burdened by an even greater cost.